Commerzbank, the second-largest bank in Germany, partly owned by the government, might become the country’s first crypto custody bank.
The financial institution applied for a crypto custody license to the Federal Financial Supervisory Authority, known as BaFin, to offer crypto custody services. Once it gets approval from German regulation authorities, Commerzbank (ETR:CBKG) will provide its clients with commercial services of investment products related to cryptocurrencies.
By working with crypto assets, Commerzbank wants to help shape emerging digital ecosystems, especially concerning the custody and trading of non-physical assets. Bernd Reh, the Senior Spokesman at Commerzbank, confirmed the bank’s interest in the crypto industry and stated that the firm is making its first steps toward digital asset adoption.
“We are carrying out our own digital asset strategy and are also planning our own offerings for our clients in the coming years,” he said.
With over €462 million under management and 28,000 groups of corporate clients, Commerzbank’s new crypto custody division could attract a larger number of investors into the crypto market.
Nevertheless, Commerzbank still has to wait on approval from regulators. Currently, there are at least 24 other companies that applied for a crypto custody BaFin license and are still on the waiting list.
On The Flipside
- Only four companies that applied for a BaFin license were approved by German authorities – Coinbase (NASDAQ:COIN), Tangany, Kapilando, and Upvest.
- The German stock market Deutsche Boerse (ETR:DB1Gn) offers investors exposure to digital assets through Exchange-traded notes (ETN), guaranteed physically in cryptocurrencies like Bitcoin and Ethereum.